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Takeover of Newcastle's Virgin Money approved by CYBG shareholders

Three motions related to the takeover were put to CYBG shareholders at a meeting this morning, all of which were approved by votes of more than 96%.

Virgin Money shareholders then voted on the scheme, with three motions all being passed by more than 99.9% of shareholders.

The two banks announced plans for a £1.7bn takeover earlier this year, with CYBG making an all-share offer which would give Virgin Money’s shareholders 38% of the enlarged group.

They say that a combined group will be a genuine challenger bank that can take on the established big players in the UK banking market.

After today’s vote, Virgin Money CEO Jayne-Anne Gadhia said:

I am delighted with the support from our shareholder base in approving the recommended all-share offer for Virgin Money by CYBG.

Bringing together the complementary strengths of Virgin Money and CYBG will create the UK’s first true national competitor in UK banking, improving competition and choice for all UK consumers, while enabling the Virgin Money franchise to continue to flourish.

Virgin Money, Jubilee House, Gosforth(Image: newcastle chronicle)

9:19Key Event

Network rail sells its property portfolio for £1.46bn

Network Rail has sold its property portfolio consisting of railway bridge arches for nearly £1.5bn.

The controversial deal will see thousands of the arches, many of which are occupied by small businesses, sold to Telereal Trillium and Blackstone for £1.46bn.

The two companies have attempted to ease concerns that the small business occupying the properties would face huge rent hikes by saying they have adopted a “tenants first” approach.

They added that this will be cemented in a “tenants’ charter”, which offers a commitment to “engage with all tenants and communities in an open and honest manner”.

A campaign group called Guardians of the Arches has campaigned against the sale and the increased rents. Many Newcastle and Gateshead firms were part of the group.

Adam Dakin, who will oversee the estate, told the Press Association:

We’re not guaranteeing that there won’t be rent increases, but we will provide financial support to those businesses that might require it.

He also insisted that the character of the arches and the communities in which they exist will be respected.Sir Peter Hendy CBE, Network Rail chairman, said:

This deal is great news - for tenants it will mean significant commitment and investment, and for passengers and taxpayers it will mean massive, essential improvements without an extra burden on the public purse.

Network rail has sold its railway arches for £1.46bn(Image: staff photo)

9:12Key Event

Luxury fashion chain Flannels to open on Newcastle's Northumberland Street

Renovation work is now under way at the former Clas Ohlson retail unit, on Northumberland Street, to convert the property into a Flannels store.

Signage has been placed around the entrance to the building - located between H&amp;M and WH Smith - announcing that the store will open next year and that the company is looking for staff.

Flannels sells more than 150 brands of luxury branded clothing for men and women. It stocks items from designers such as Barbour, Calvin Klein, Gucci, and Jimmy Choo.

The new store will the first to be opened in Newcastle, although Flannels does have branches in the Metrocentre, Sunderland and Middlesbrough.

In total Flannels currently operates 18 stores, although it plans to open two more in Doncaster and Merry Hills, along with the Newcastle branch.

Flannels is owned by billionaire businessman Mike Ashley, who also owns Sports Direct and Newcastle United.

Last month ChronicleLive revealed that Sports Direct had purchased the Northumberland Street site for £31.6m, making it the region’s biggest property deal this year. The 90,000sq ft building was purchased from Aberdeen Standard Investments.

Flannels is opening a new store on Northumberland Street in Newcastle(Image: Jonathon Manning)

9:07Jonathon Manning

Unilever confirms December date for shift from London to Rotterdam

consumer goods giant Unilever has confirmed that it expects to ditch its London base in December as it prepares to move to the Netherlands.

The group, which owns Dove soap and Marmite, said it will put its plans to a vote at its general meetings on October 25 and 26. It intends to move by Christmas Eve.

However, reports claim the company is still working to convince investors that the relocation is the right move, and could face a shareholder revolt.

Unilever announced in March that it planned to “simplify” from two legal entities into a single one incorporated in Rotterdam.It dealt a major blow to the UK Government and its efforts to uphold Britain’s status as a centre for business after Brexit.But Unilever has insisted the move to Rotterdam has “nothing to do with Brexit”.It also said at the time its 7,300 workers the UK and 3,100 in the Netherlands will be unaffected by the changes.

A Unilever sign

9:02Key Event

JD Sports shrugs off weather hit and tough market to post profit hike

JD Sports has revealed record half-year results after its profits jumped by 19% despite a tough retail market.

The sportswear chain - which owns Blacks and Go Outdoors - saw its pre-tax profits soar to £121.9m in the six months leading up to August 4.

Total like-for-like sales increased by 4% due to a boost from its online store. However, its outdoor brands, which includes outlets such as Millets, had a difficult first half after the summer heatwave dented demand.

JD Sports said:

After a promising first quarter when our outdoor fascias benefited from the late winter, they have all had an extremely challenging second quarter with good growth in sales of lightweight shorts and T-shirts nowhere near able to compensate for a significant and understandable decline in jackets and other waterproof apparel.

Peter Cowgill, executive chairman of JD Sports, said:

Against a backdrop of widely reported retail challenges in the UK, it is extremely reassuring that the profitability in the UK and Ireland sports fascias has been further enhanced.

This reflects the value of the investments that we have made over a number of years in developing a dynamic multi-channel proposition which marries the best of physical and digital retail.

JD Sports at the Silverlink in North Tyneside(Image: Google)

8:57Jonathon Manning

Hyperdrive Innovation named 'one to watch' in The Sunday Times TechTrack100

Sunderland battery manufacturer Hyperdrive Innovation has been named as “one to watch” in a list of the fastest growing UK tech companies.

Hyperdrive Innovation develops battery packs that can be used to power electric vehicles, homes, and businesses.

Since being founded in 2012, the company has grown its sales to £4.9m, and is forecasting that this figure will soon rise to £7.6m.

Its growth has led it to be named as a company to watch in the Sunday Times’ TechTrack100, which ranks the UK’s fastest growing independent technology firms.

Firms are eligible to be nominated for the table if they have seen their sales grow from over £250,000 to more than £5m over the last three years.

No companies from the North East were named in the main league table, and Hyperdrive Innovation was the only firm from the region to be named in the Ones to Watch category, having not met the criteria for the main table.

Everyone at Hyperdrive is delighted to be recognised as one of the companies to watch by TechTrack100. Over the last few years, increasing demand for our world-leading battery technology has seen us grow our customer base in the UK and around the world.

We are working with blue-chip companies on a variety of different projects, demonstrating the flexibility of our technology, including an online grocer to power robots in its warehouses and a global provider of home and commercial energy storage systems. We have more exciting plans for the future, including doubling the size of our manufacturing facility in Sunderland.

Hyperdrive Innovation MD Stephen Irish

8:52Jonathon Manning

Oil and gas industry at a crossroads and needs right investment, report warns

The oil and gas sector is at a crossroads and needs the right investment conditions to secure its long-term future, according to industry chiefs.While production remains strong, there is “serious concern” around the longer-term impact of low rates of drilling, the Oil & Gas UK economic report 2018 has found.A 50% decline in drilling activity over the last five years has raised “real concern” about the ability of the industry to realise its potential.The report found that production remains strong and by the end of 2018 could be 20% up on five years ago while operating costs have stabilised and are now being sustained at around $15 (£11.59)/barrels of oil equivalent.The body is calling for more capital investments to be committed to the UK Continental Shelf.Oil & Gas UK chief executive Deirdre Michie said the industry is at a crossroads and that choosing the correct direction of travel is “critical” to securing the organisation’s vision for the future.She said:

Industry is emerging from one of the most testing downturns in its history. However, the steps that have been taken by industry, government and the regulator have delivered tangible results.

Despite the improvements seen in recent years, we find ourselves at a crossroads.

Record low drilling activity, coupled with the supply chain squeeze, threaten industry’s ability to effectively service an increase in activity and maximise economic recovery.

The UK Continental Shelf is a more attractive investment proposition - our challenge now is to take advantage of this.

We have to drive an increase in activity while continuing to find and implement even more efficient ways of working which support the health of supply chain companies whilst also keeping costs under control.

It shows that investment conditions remain key to the long-term future of the North Sea industry.

Four exploration wells and five appraisal wells were spudded (the process of beginning to drill a well) in the first eight months of this year, compared with five exploration wells and one appraisal well in the first half of 2017 and 23 across the whole of last year.Even with more wells to come, total exploration activity this year is expected to be the lowest since 1965, the report found.

An oil rig in the North Sea(Image: PA)

8:47Jonathon Manning

FTSE and pound update

The FTSE-100 index opened at 7279.30.

The pound at 8am was 1.3054 dollars compared to 1.3026 dollars at the previous close.

The euro at 8am was 0.8907 pounds compared to 0.8908 pounds at the previous close.

8:44Key Event

Apple said to be preparing three new iPhones for launch

Apple could be about to unveil three new iPhone handsets this week, as the tech giant looks to expand its range of smartphones.

Reports suggest the company is planning to release two updated versions of the iPhone X.

One model will be a larger handset while the other will be a cheaper version of the device, although both will have an all-screen front panel and face ID technology.

Industry experts are also predicting a fourth generation Apple Watch will be introduced during the company’s event at the firm’s Apple Park campus in California, tomorrow.

Ru Bhikha, mobiles expert at uSwitch.com said the company’s expected expansion of the iPhone line-up was a decision designed to turn the heads of rival smartphone users.

He said:

Apple’s decision to launch three iPhone devices this week is a strategic move to regain footing in multiple areas of the mobile market.

This all-in approach will likely see the launch of an affordable specimen - touted as the iPhone XC - as well as a reboot to the iPhone X and a larger X model.

While the reboot and the supersize X are likely to be the showier additions to the line-up, the development of what is essentially a successor to the super-popular budget SE is a real crowd-pleasing move.

Depending on the price point, the launch of the XC could also see Apple making serious moves in the mobile mid-tier as it hopes to regain ground from more competitively priced rivals.